Why sustainability initiatives fail and how to avoid it

12 November 2022|Sustainability

By Jarrod Chesher and Rachel Scott

Most sustainability initiatives fail. In fact, a study by the University of Cambridge found that only 26 percent of companies achieved their sustainability goals. So why do so many well-intentioned efforts fall short?

For insights into successful sustainability implementation, read our article: Sustainability and environmental impact in asset management

Lack of commitment

One of the most common reasons for sustainability initiatives to fail is a lack of commitment from senior leadership. Without buy-in from the top, it's difficult to implement changes that will be embraced by the rest of the organisation. Furthermore, without a clear mandate from leadership, it's easy for employees to become disengaged and less invested in the initiative.

To avoid this, it's important to ensure that senior leadership is on board with the initiative from the start. They should be clear about their expectations and what they're willing to commit to in terms of resources and support. Business processes should be developed to achieve sustainability as an outcome. Expecting sustainability outcomes to be achieved through minor modification of existing processes is unrealistic.

Poor change management

Another common reason for sustainability initiatives to fail is poor change management. Many organisations struggle to effectively manage organisational change, which can cause employees to become resistant to the new initiative.

Learn more about effective change strategies in our guide: Breaking down business silos how to collaborate and succeed

To avoid this, it's important to have a clear plan in place for how the initiative will be rolled out and communicated to employees. Furthermore, it's important to provide employees with the resources and support they need to successfully make the transition. It is recommended that change management models, such as Kotter's 8 Step Change Management Model or Hoshin Kanri are used to support the implementation of change.

Failing to invest upfront

Many organisations also fail to invest in their sustainability initiatives upfront, failing to provide the initial momentum required to support enduring change. To avoid this, it's important to calculate the return on investment (ROI) of the initiative and make sure that it's clear how the organisation will benefit.

Once the ROI is calculated, it's important to secure buy-in and investment from senior leadership. It's recommended to create a budget for the initiative and make sure that there are sufficient resources allocated to support it.

Not measuring performance

Finally, another common reason for sustainability initiatives to fail is a lack of performance measurement. Many organisations fail to establish metrics to track the progress of their initiative, which makes it difficult to gauge whether or not it's successful. To avoid this, it's important to establish clear performance indicators at the outset of the initiative.

These indicators should be aligned with the organisation's overall goals and objectives. Furthermore, it's important to put in place a system for regularly tracking and reporting on progress. This will help to ensure that the initiative stays on track and that employees remain engaged.

Conclusion

There are a variety of reasons why sustainability initiatives fail, but the most common ones are due to lack of commitment, poor change management, failing to invest upfront, and not measuring performance. In this article, we've explored each of these reasons in detail and provided tips on how you can avoid them in your own organisation. By following these tips, you can increase the chances of success for your sustainability initiative!ot measuring performance.

Join our growing community of asset management professionals. Follow us on LinkedIn and be part of the conversation.